The news ends speculation that the key forward would pursue a more lucrative, longer term deal elsewhere.
Among the suitors for Gumbleton's services were the Western Bulldogs, Melbourne, Carlton and Fremantle.
The injury-prone 24-year-old played just 28 games in six seasons with Essendon after being the No.2 pick in the 2006 NAB AFL Draft.
He received back surgery at the end of last season but is confident his issues are behind him after playing six of the last seven games of 2012 and kicking 11 goals.
The No.2 pick of the 2006 draft said he was delighted to stay loyal to Essendon.
"The club has stuck by me with the injuries I have had and I am really passionate about the Essendon Football Club," Gumbleton said.
"While there were opportunities elsewhere, I have lots of good mates at the club and I am really confident in the direction that the team is heading."
Dons coach James Hird said the club was thrilled to have secured the exciting key forward ahead of the 2013 season.
"Scott has been incredibly unfortunate with the injuries he has acquired throughout his career, but there was no question in our mind that he remains a required player for the club," Hird said.
"We are really pleased that Scott has re-signed with the club. He a fantastic clubman and a great teammate and we look forward to him having a big pre-season campaign."
